Producer Komuro's Rojam to be listed on H.K.'s GEM

Asian Political News, May 28, 2001

HONG KONG, May 24 Kyodo

Rojam Entertainment Holdings Ltd., a Hong Kong-based music production house led by Japanese producer Tetsuya Komuro, said Thursday it will be listed on the Stock Exchange of Hong Kong's Growth Enterprise Market (GEM) on May 31.

Rojam officials told a press conference the firm will have 90 million shares, or about 8.15% of issued share capital, in the initial public offering. The issue will include 70 million new shares and 20 million existing ones at HK$1 ($0.128) each.

The net proceeds of the placing will be about HK$50 million and will be used for strengthening and expanding businesses in Asian markets including Japan, Hong Kong, South Korea, Taiwan, China and Thailand.

''Our listing in Hong Kong is an important step in enhancing the group's growth and strengthening our capabilities in the provision of innovative services to customers,'' said Komuro, Rojam's chairman.

Komuro co-founded Rojam in 1998. The company is involved in music production, music publishing, record distribution, artist and event management as well as trademark licensing. It also operates a music entertainment portal on its Web site.

One of Japan's top producers, Komuro has worked with such pop singers and bands as Namie Amuro, Tomomi Kahara, Globe and TRF.

Komuro said he hopes Rojam will become a leading integrated music production house and a business partner of choice for entertainment companies in Asia.

Rojam Chief Executive Officer Arihito Yamada said the company's business model brings higher returns and lower risks than traditional music firms because it draws income mainly from signing bonuses received for producing music for record houses and from royalties, rather than depending on record sales.

According to Rojam's listing prospectus, the company plans to unite with strategic business partners in Asia with the capability to complement its businesses to minimize risk in entering new markets in the region.

It will also collaborate with music clubs in major cities in the region to promote Rojam's brand name.

Rojam reported a net profit of HK$17.7 million for the nine months to Dec. 31 last year. It estimates profit for the year to March 31 will be at least HK$19 million.

Its strategic investors include Softbank Entertainment Ltd., NTT (Hong Kong) Ltd., Dentsu Inc., SOTEC Co., Media Factory Inc., Avex Inc. and AEON Credit Service Co.

Rojam's market capitalization after listing is expected to be HK$1.1 billion, and Komuro will hold 42.36% of the company's issued share capital.

Komuro told the press conference he has to work harder in the future both for Rojam and in his personal life as he will become a father by the end of September.

Earlier this month, the 42-year-old musician married Asami Yoshida, a vocalist in his group Kiss Destination.